Demand for new homes fueled by a low existing inventory helped boost builder confidence one point in July to a level of 56, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
Demand for new homes fueled by a low existing inventory helped boost builder confidence one point in July to a level of 56, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
It is the seventh consecutive month builder confidence has increased and is the highest level since June 2022.
“The lack of resale inventory means prospective home buyers who have not been priced out of the market continue to seek out new construction in greater numbers,” NAHB Chairman Alicia Huey said in a statement. “At the same time, builders are troubled over rising mortgage rates approaching 7% and continue to grapple with supply-side challenges, including ongoing scarcity of electrical transformer equipment and growing concerns about lot availability.”